Fifty hospitals file lawsuit against HHS over 'two-midnight' rule

More than 50 hospitals filed a lawsuit against the Department of Health and Human Services Friday, pushing back against a controversial provision of the “two-midnight” rule that reduces inpatient compensation by 0.2%.

The suit, filed Friday, is the fourth in a string of lawsuits brought by more than 130 hospitals and the American Hospital Association against the HHS in opposition of the rule.

The two-midnight rule requires hospital stays to span two midnights before a patient is considered an inpatient admission. The 0.2% rate cut was designed to offset the estimated $220 million a year in additional costs associated with an increased number of admission.

In a September ruling of a previous case filed against HHS over the rule, a federal judge determined that HHS Secretary Sylvia M. Burwell needed to better justify the rate cut. In response to the judge's ruling, the Centers for Medicare & Medicaid Services stated that it does “not propose to reconsider the reduction... at this time” but would accept public comments on the provision until February 2, 2016.

More than 300 healthcare workers have complained to the Health and Human Services Department about employers infringing on their religious or conscience rights, a monthly total that increased nearly tenfold.